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Suppose that the U.S. firm Alcoa sells $2 million worth of aluminum to a British...

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Suppose that the U.S. firm Alcoa sells $2 million worth of aluminum to a British firm. If the exchange rate is currently $1.69 = 1 and the British firm will pay Alcoa 1,183,431.95 in 90 days, answer the following questions What exchange-rate risk does Alcoa face in this transaction? O A. A rising British pound. OB. A falling British pound. O C. A falling dollar. OD. As long as the British firm pays Alcoa, there is no risk. What alternatives does Alcoa have to hedge this exchange-rate risk? O A. Alcoa can sell currency futures. O B. Alcoa can enter into a forward contract. O C. Alcoa can buy options contracts. D. All of the above. Vilat exchange-lale Alcud lace in this uansacuon O A. Aristng British pound. B. A falling British pound. OC. A falling dollar. D. As long as the British firm pays Alcoa, there is no risk. What alternatives does Alcoa have to hedge this exchange-rate risk? O A. Alcoa can sell currency futures. OB. Alcoa can enter into a forward contract. OC. Alcoa can buy options contracts. D. All of the above. To hedge this exchange rate risk, Alcoa can rate to hedge the risk of the pounchy pounds for dollars at the forward Next Type here to search O BI

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